$25m - but Rory McIlroy out of the rough after Horizon settlement

Rory McIlroy’s out-of-court settlement with his former management company brings to mind that scene from Monty Python’s Life of Brian when the kindly Roman centurion is lining up the locals for execution.

“Crucifixion?” “No, freedom actually.”

That, in a nutshell, is what the world No 1 has saved himself by writing a cheque which is believed to be close to $25 million (€21.8 million). Painful? Yes. Worth it? Almost certainly.

Compared to a long and expensive trial in the High Court — the outcome of which was far from certain, given the contracts he signed with Horizon Sports Management — paying his bills now and taking control of his destiny via Rory McIlroy Incorporated will save the 25-year old Down man tens of millions going forward. Perhaps more.

While there are those who point to the fact that he had won five tournaments, including two majors, since he decided to sue Conor Ridge and others on September 27, 2013, there is no telling what might have emerged from a very public trial that was schedule to last up to eight weeks and what effect it might have had on the greatest golfing talent the world has seen since Tiger Woods.

Quite apart from looking after the nitty-gritty of a golfer’s career from a financial point of view, an agent is also privy to myriad professional and private matters.

With the opening day of the Masters Tournament now just 63 days away, getting closure on a case that has been festering for close to two years can only be good for McIlroy’s chances of completing the career Grand Slam at Augusta National.

That the case had to go to the steps of the High Court is a surprise, given that a settlement in mid-2013 would have cost him far less in terms of commissions and fees owed, not to mention his own legal costs and those of his entourage.

The sums involved in the case are mind-blowing but not altogether surprising considering McIlroy signed a five-year, $20m deal with Nike at the start of 2013. While some would concede that he had a point in describing commissions of 20% on his Nike deal and 15% on other endorsement contracts generated or negotiation for him by his agents as excessive, he is now master of his own destiny in that regard.

Horizon, with whom he had a contract until the end of 2017, claimed in their Statement of Claim that in the 18 months they were his agents, they negotiated contracts that would generate $140m (€119m) for McIlroy by the end of 2017.

That figure did not include prize money or performance bonuses McIlroy might earn by the end of 2017 such as remaining at World No 1, picking up Major wins or an Olympic medal to name two possible items.

Last November’s protracted discovery hearings relating to mobile phones belonging to McIlroy and his entourage being reset to factory settlings brought clarity to the question of what Horizon might be seeking in terms of a settlement. Fees owed to that date amounted to just under $9m, with another $11m due on the contracts that were scheduled to run out at the end of 2017.

This base of $20m (€17m) would not include any possible commission on bonuses earned by McIlroy over the next three years, but given that he owed $9m for the first 18 months, another $18m for the next 36 months would amount to a bill of around $27m.

Add Horizon’s potential legal costs of €2.5m, not to mention his own barristers and those employed to represent the chief executive of Rory McIlroy Inc, Donal Casey, his Tour Manager Sean O’Flaherty and his father, Gerry, and the bill is considerable.

Little wonder McIlroy, having negotiated in offices at the Four Courts until it closed at 9pm on Tuesday night, retired to the offices of his legal advisors in the nearby Arran Quay area to work away on a resolution until the wee small hours of Wednesday morning.

Even allowing for a late night, it was surprising that neither he, nor any of his backroom team, were in court alongside Conor Ridge at 11am to hear his barrister Paul Gallagher tell Mr Justice Brian Cregan that the parties had resolved their differences.

Perhaps it was a negative photo op he could do without and he was soon winging his way back “home” to Florida to get ready for the real battle — the quest for the green jacket at the Masters. In more ways than one, this was an unusual court battle that produced positive outcomes for two parties.

The brief joint statement, they wished each other well for the future, bring to an end one of Irish golf’s least palatable chapters.

With Horizon managing Shane Lowry and McIlroy master of his own destiny, wishing each other well was as good a start as any to a new adventure for all involved.